Nearly half of U.S. home sellers now provide temporary rate buydowns to attract buyers amid a 47% surplus in April 2026 listings.
U.S. home sellers are increasingly offering 2-1 mortgage buydowns to lure buyers in a cooling market, with 47% more listings than active buyers in April 2026. The concession temporarily reduces mortgage rates by two percentage points in the first year and one point in the second before reverting to the original rate.
The trend reflects expectations of lower future mortgage rates, driven by factors like falling oil prices and geopolitical developments. Sellers or builders fund the upfront cost, making loans more affordable during the initial years.
Market observers suggest the strategy benefits buyers anticipating refinancing opportunities as rates decline, though it remains a short-term solution in a high-rate environment.